Despite trillions in economic “stimulus” which have pushed the stock market to record highs, the U.S. economy officially shrank by 1% in the first quarter.
Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 1.0 percent in the first quarter according to the “second” estimate released by the Bureau of Economic Analysis…
The GDP estimate released today is based on more complete source data than were available for the “advance” estimate issued last month.
If second quarter GDP does the same, the economy will officially be in a recession.
But surely the problem isn’t with the economy? Now in its fifth “summer of recovery” – yes fifth, so there! – and with the official unemployment rate dropping, surely the economy is fine?
The problem must be that our government officials aren’t measuring GDP correctly. After all, truth is a social construct, right? Just rig the GDP counting methods until officials produce a number that “proves” the economy is growing, and have President Obama declare it’s true, and it will be true.
They did things that way in 2013. For example, when Obama simply declared that his irresponsible budget proposal was “fiscally responsible”. Or when they suddenly declared the GDP to be $550 billion higher after deciding that GDP should include future government pension promises, money lost on failed movies, and so forth.
Italy gets the idea. Italy will start to count cocaine sales, prostitution and smuggling as part of their GDP.
The UK is also working on it. Contribution of drug dealers and prostitutes to the UK economy boosted GDP by £10bn according to estimates.
For the first time official statisticians are measuring the value to the UK economy of sex work and drug dealing – and they have discovered these unsavoury hidden-economy trades make roughly the same contribution as farming.
You see? In this modern world, when a hooker helps a Kennedy get to sleep at night, she contributes as much to national wealth as a farmer growing food for someone’s table.
Obama needs to get on this (so to speak). That way, The Party can prove that the economy is always growing. /sarc